The Ins and Outs of Conventional Loans

The industry term “conventional loan” just means a loan that is NOT backed by the government. VA, FHA and USDA loans are examples of government backed or “non-conventional” loans.

The other term you’ll probably hear thrown about is “conforming” loans. That simply means the loan “conforms” to guidelines set by Fannie Mae (FNMA) and Freddie Mac (FLMC). These two government entities set mortgage lending guidelines, buy mortgages from lenders and sell them to investors.

Sounds complicated, right?

Here are a few insider secrets we’ve learned about conventional loans:

It’s perfectly acceptable to talk to a lender before you pick a house or a Realtor

The first 5 days you’re under contract are the most important. So don’t delay!

An online application is a great start, but nothing beats a 15 minute phone call to understand your options.

A low rate doesn’t mean anything unless your loan actually closes and have the best loan for you!

You CAN get everything the online lenders promise from a local lender

A lot of lenders make promises but not everyone delivers. Check for things like online reviews as proof.

Conventional loan loans seem straightforward at first glance. However, that doesn’t mean your family’s finances are! So while it’s a great idea to pre-qualify online and see what the numbers are, it’s best to schedule a short follow up phone call to discuss your situation and get a firm estimate on the important numbers.

Areas We Serve

The Wendy Thompson Lending Team is licensed to write conventional mortgage loans anywhere in the United States.

However, as a local, Memphis based company, our primary service areas include:

Arlington

Bartlett

Collierville

Eads

Germantown

Lakeland

Memphis

Millington

Tipton County:

Atoka

Brighton

Fayette County:

Oakland

Somerville

Decatur County:

Decaturville

Parsons

Haywood County:

Brownsville

Haywood County:

Brownsville

Lexington County:

Chesterfield

Lexington

Madison County:

Jackson

Gibson County:

Dyer

Humboldt

Medina

Milan

Trenton

Yorkville

Mississippi:

Olive Branch

Southaven

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